As an employer, there are always certain people you value so much in your organisation that you dread the day they may come into your office, close the door and ask: “Could I have a quick word?”
Retaining your best staff is one of the most important things you can do as an employer but it’s not always easy – by dint of the fact they’re good, it also means they’re marketable.
The Wall Street Journal notes that a high employee turnover rate can cost “twice an employer’s salary to find and train a replacement”. Not only does it affect the company financially but it can also cause a talent and a knowledge drain in your company and it can decrease performance and morale among existing employees.
One way to retain good people is to offer a competitive package with benefits and incentives. A higher basic salary isn’t always the reason good people may choose to go elsewhere. Other added benefits and incentives can often be the deciding factor which sway people to make a move. So always monitor what your competitors are offering because you could lose someone for something that is relatively easy and cost effective to provide as part of an overall package.
Also, the environment in which they work can have a huge impact on people’s wellbeing and motivation. Given that you have to spend so much time at your place of work, whether or not you actually enjoy your environment can have a huge influence on whether you choose to stay or try moving somewhere else. At Peninsula we have great offices with plenty of light and space; our employees give off a good energy as they work and interact around the building, and we have lots of social and teambuilding events as well as pure work related activities.
Culture is also important. People are far less likely to leave if they feel they “belong” somewhere – that they’re part of a “tribe”, a community, something cohesive with a good vision and direction. Creating that comes down to a strong message, a clear strategy and positive communication and reinforcement within the organisation. It also involves employees buying into the vision – it’s all very well to say one thing when your employees can see you’re doing something completely different – so consistency is vital.
To keep good people, they need to feel they’re going somewhere and have room to grow and learn – stagnation is a killer for ambition. So they need a good potential career path, scope for development, to see others within the firm who have progressed through the ranks and training provided where needed to help them develop and enhance their skill set.
Also regular, honest reviews are vital so that all your employees understand where they are performing well and where they can improve. Rewards and praise for achievements, even in small ways that may be non-remunerative, are important in ensuring your good people know they are being recognised. As Alexander Den Heijer, a leading trainer and motivational speaker said: “The best way to make your employees go the extra mile is to appreciate them.”